Brazil: Current account shortfall narrows in January
Brazil’s current account recorded a USD 8.8 billion deficit in January, narrowing from the USD 9.4 billion shortfall posted in the same month last year and from the USD 11.1 billion deficit clocked in December 2022.
January’s result chiefly reflected the goods trade balance recording a surplus, swinging from a deficit in the same month a year ago. Additionally, the services account deficit narrowed by over 11% from January 2022. Meanwhile, net foreign investment was positive in the month, totaling USD 6.9 billion in inflows (January 2022: USD +5.1 billion).
Meanwhile, the 12-month sum of the current account balance widened to a USD 55.4 billion deficit in January from the USD 47.1 billion shortfall recorded in January 2022. This was equivalent to approximately 2.9% of GDP, a proportion which was broadly stable from January 2022.